Elimination period

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Elimination Period

In disability income insurance or loss of income insurance, the period of time that must transpire before the insurer begins to make payments covering the claim. That is, if one suffers an injury or a long term illness that results in substantial loss of income, the insurance policy sets an elimination period, at least in part to ensure that the disability or sickness is in fact long-term. The elimination period is often thought of as the deductible for disability and loss of income insurance as the policyholder is responsible for expenses incurred during it. For the disability income insurance run by the Social Security Administration, the elimination period is five months. Private plans often include 90-day periods, or shorter periods in exchange for higher premiums.

Elimination period.

If you have disability insurance or long-term care insurance, there's a waiting period, called the elimination period, from the time you become disabled, or are certified in need of long-term care, and when you begin receiving benefits.

You often have a choice of elimination periods -- such as 30, 60, or 90 days -- when you purchase the insurance, though sometimes the payment gap is dictated by the terms of the policy.

In general, the shorter the elimination period the higher the premiums will be for comparable coverage.

References in periodicals archive ?
Elimination periods of six months to two years typically are chosen by people who are covered under their company's short-term policy.
The insurance policy has a 20-day elimination period.
If the business owner were unable to work in the business due to health problems a claim would be filed with the insurance company after the elimination period has expired.
On most policies, the elimination period only has to be met once in one's lifetime.
1998, the average annual premium for a policy with a $100-per-day nursing home care/$50-per-day home care benefit, four years of coverage, and a 20-day elimination period was $274 at age 40; $385 at age 50; $1,007 at age 65; and $4,100 at age 79.
The specific contract features are the duration of the benefit period, the length of the elimination period, the interaction of benefit period with elimination period, a preexisting condition limit, inflation coverage, a nonforfeiture option, the benefit trigger, coverage of home health care, and the upper age limit at which a policy will be issued.
If you did not need a benefit for six months, your premium would be substantially lower than if your elimination period were 30 days.
An elimination period, which defines how soon a claimant would receive a benefit after the start of disability,
Yesterday someone asked is they could health qualify after donating a kidney and today someone wanted to understand the difference between a Calendar Day Elimination Period and a Service Day EP," explains Jesse Slome, executive director of the Association, a national trade group focused on creating heightened awareness.
Both the elimination period and total disability benefit period allow for a 180-day break without requiring a new period to begin.
It appears the unlimited benefit period, zero-day elimination period, and large discounts for couples and for good health may be a thing of the past.
Except for the benefit increase option and corresponding price, the policies compared were the same, offering a three-year benefit totaling $164,000, and a 90-day elimination period.

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